The New York Stock Exchange, as a self-regulated organization, should follow the same rules it makes for its member companies, Securities and Exchange Commission Chairman William Donaldson told Congress Wednesday, Reuters reports.
In testimony before the Senate Banking Committee, Donaldson said the SEC should review SRO governance, as well as the composition of their boards and committees and their decision-making processes.
"Just as SROs have demanded that their listed companies strengthen their governance practices, we must demand that, at a minimum, SROs match the standards they set for listed companies, Donaldson said.
The recent resignation of NYSE head Richard Grasso over his $140 million compensation package has triggered much debate over the operating procedures of the Big Board. In his testimony, which was part of a discussion about several market structure issues, Donaldson also challenged the problem of markets charging "access fees" for quote sharing.